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Indonesian PE players: Local supplies are tight

by ChemOrbis Editorial Team -
  • 28/11/2017 (15:52)
According to players in Indonesia, overall PE supplies are tight in the domestic market due to lower operating rates in the midst of high ethylene prices.

A Jakarta-based trader commented, “Local PE supplies are limited since both domestic and regional producers are lowering their production rates given strong ethylene. Traders operating in the local market are standing firm on their offers by pointing to their low stock levels.”

A film packaging converter noted, “Although we initially expected PE prices to soften in November given weak demand, prices have firmed up recently as HDPE and LLDPE supplies are tight in the local market.”

A source from a local producer said, “We have already sold out our HDPE and LLDPE allocations for December to the local market while we are now not giving any offers to buyers other than our regular customers. Meanwhile, we heard that another domestic producer is running its PE plant at lower rates given higher spot ethylene prices.”
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